The 10-second takeaway
For the quarter ended June 30 (Q2), NuStar Energy crushed expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
NuStar Energy reported revenue of $1.90 billion. The seven analysts polled by S&P Capital IQ predicted sales of $1.30 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $1.59 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.06. The nine earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS were -$3.49 for Q2 versus $1.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 5.5%, 610 basis points worse than the prior-year quarter. Operating margin was 1.9%, 550 basis points worse than the prior-year quarter. Net margin was -13.0%, 1,880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $5.77 billion. The average EPS estimate is $1.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 340 members out of 357 rating the stock outperform, and 17 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 110 give NuStar Energy a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NuStar Energy is hold, with an average price target of $58.50.
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